PROJECT OUTLINE

 Select a company and examine the following issues for your company.

1. Determine and evaluate marketing management orientation.

2. Provide examples for customer relationship management (CRM) tools.
3. Conduct a SWOT analysis.
4. Design, analyze and interpret the business portfolio (The BCG Growth-Share
Matrix).
5. Examine company’s micro environment.
6. Examine company’s macro environment.
7. Explain cultural, social, personal and/or psychological factors affecting
consumer buying behavior.
8. Explain type of buying decision behavior for a specific product of the
company.
9. Examine
a) the company’s segmentation bases,
b) define the target market,
c) evaluate the market targeting level.
10. Make a research to analyze and measure:
a) Customer lifetime value
b) Positioning
11. Develop strategies for growth and downsizing based on the product/market
expansion grid.

Support all your evaluations and analysis with appropriate data!

1.
Strategic Market Orientation
There are various costs and benefits associated with the strategic market
orientation of the organization. Customer focus is one of the key features of
market orientation strategy of Mercedes-Benz which influence them to
concentrate more on developing and producing products that not only meet
customer needs, but do so in a timely manner. It assists them to stay ahead in the
competition in marketplace responsiveness (Kumar et al., 2011).
One of the major objectives of the enterprise is to create added value to the
customers. Mercedes-Benz aims at reaching the top position in all the criteria of
customer satisfaction by employing innovative ways to engage with the
customers in order to understand their needs and preferences and thus design
new products based on customer feedbacks and suggestions. For this purpose,
Mercedes-Benz has designed new interfaces for sales and service processes to
maintain contact with their customers all the time and also deliver customized
mobility and transport services. Thus Mercedes-Benz is found to have a high
degree of market focus (Daimler AG, 2014).
2. https://www.salesforce.com/resources/customer-stories/become-
customer-centric-mercedes-benz/

3.
Strengths

 Strong brand value

 Innovation
 Commitment to corporate social responsibility
 popularity among young people
 Strong presence in Motorsport
 Strong R&D
 Environment friendly vehicles
 High market share
 30 manufacturing sites in 14 countries

Weaknesses

 High production cost

 Expensive spare parts
 High maintenance cost and less mileage

Opportunities

 Developing intense hybrid cars and fuel efficient cars for the future.
 Tapping emerging market across the world and building a global brand.
 Increased income and purchasing power in developing countries.

Threats

 Government regulations in CO2 emissions

 Rising competition from Japanese automakers producing luxury vehicles
manufacturers
Toyota-> Lexus
Nissan-> Infinity
 Improvement in public transport
 Increasing fuel prices

SWOT Analysis
 STRENGTH
 Outstanding Reputation
 Loyal Customer base
 Leader in innovation
 Manufactured and assembled in over 20 countries across the world
 Highly qualified and experienced management
 Strong brand value / robust brand image
WEAKNESS
 High maintenance charge
 Expensive spare parts
 Price of cars are high
OPPORTUNITIES
 Developing hybrid cars
 Fast growing luxury automobile sectors
 Increased percentage of new successful entrepreneurs
THREATS
 Government policies for automobile sector across the world
 Competition from other luxury automobiles brand
 Increase in labor cost
 Increase in fuel prices

4. When I compare all market position I have found that Mercedes Benz is in cash
cow position which is the next group of BCG, as the company has no need to
determine their brand and no dependence on heavy investment which cash they
invest on any new model they obtain it back with big amount of revenue, It represents
the marketplace position and the show of product how much could it be strong within
an established industry. It creates very gradually and get higher rate of market value,
it also rely upon cash, and the Mercedes Benz has too much opportunities to get
incentives for market, the product is no need for marketing to get high share.

Market share of Mercedes Benz is very high talk about as compare to other brands
and has lengthy and strong history in history of most brands on the market and is
widely recognized for the reliable product. Mercedes Benz specially designed for
corporate sectors. And today it's working like cash cow. With this segment Mercedes
Benz has limited marketing for attract the customers, because the brand value is the
genuine worth of any company. In cash cow the other brands is accessible in market
however the genuine position of the merchandise not down and it creates the amount
of money.

Mercedes Benz has many competitor in the car manufacturing market this means the
company has the limited opportunities in the market. However the market of auto
can't be discontinued; it expands with customer's demand.

6.
External Macro business environment factors are:
Political Factors
Since the company has invented the automobile, it has been responsible for
expanding the company worldwide therefore it has to deal with having a foreign
policy about of importation of manufactured goods. Therefore the political
issues related to automotive industry is complicated and complex.

Economic factors
Mercedes-Benz has troubles due to international currency fluctuations. There is
ongoing global slowdown due to a different scale of tax and revenue
measurement. It also affects the selling of the product. Exchange rate between
Euro and Ringgit cars. It makes the European car more expensive when selling
in Malaysia due to currencies exchange rate.

Social Factors
Due to the problems of global warming, Mercedes-Benz has invented electric
cars and small cars for reduced spaces. They have also invented an
environmentally friendly car called the BLOME. This car gives off oxygen from
its flue pipe. The roof of the car is made of transparent organic solar cells.

Technological factors
Technology plays a very important role in promotion and production. It has
made the industry reduce the labour force. As a result of the low labour forces,
Mercedes can save cost. The use of advanced technology, Mercedes can now
produce more cars in a short period of time.

Environmental factors
Environmental activists are becoming more active and aggressive. Besides, it is
also discovered that consumers are seemingly becoming more environmental
conscious, where they may even consider if the car manufactured by a particular
company has the lowest CO2 emission.

PESTEL stands for – Political, Economic, Social, Technological,

Environmental, and Legal factors that impact the macro environment in which
Mercedes Benz operates in. Philip M. Rosenzweig provides extensive
information about PESTEL factors in Mercedes-Benz case study.

Political Factors
- Political and Legal Structure – The political system seems stable and there is
consistency in both economic policies and foreign policies.

- Political consensus among various parties regarding taxation rate and

investment policies. Over the years the country has progressively worked to
lower the entry of barrier and streamline the tax structure.

Economic Factors
- Foreign Exchange movement is also an indicator of economic stability.
Mercedes Benz should closely consider the forex inflow and outflow. A number
of Mercedes Benz competitors have lost money in countries such as Brazil,
Argentina, and Venezuela due to volatile forex market.

- According to Philip M. Rosenzweig . Mercedes Benz should closely monitor

consumer disposable income level, household debt level, and level of efficiency
of local financial markets.

Social Factors
- Leisure activities, social attitudes & power structures in society - are needed to
be analyzed by Mercedes Benz before launching any new products as they will
impact the demand of the products.

- Consumer buying behavior and consumer buying process – Mercedes Benz

should closely follow the dynamics of why and how the consumers are buying
the products both in existing categories and in segments that Mercedes Benz
wants to enter.
Technological Factors
- Proliferation of mobile phones has created a generation whose primary tool of
entertainment and information consumption is mobile phone. Mercedes Benz
needs to adjust its marketing strategy accordingly.

- 5G has potential to transform the business environment especially in terms of

marketing and promotion for Mercedes Benz.

Environmental Factors
- Consumer activism is significantly impacting Mercedes Benz branding,
marketing and corporate social responsibility (CSR) initiatives.

- Environmental regulations can impact the cost structure of Mercedes Benz. It

can further impact the cost of doing business in certain markets.

Legal Factors
- Health and safety norms in number of markets that Mercedes Benz operates in
are lax thus impact the competition playing field.

- Intellectual property rights are one area where Mercedes Benz can face legal
threats in some of the markets it is operating in.

9.

Mercedes segments its luxury & state of art cars on a mix of demographics,
Psychographics & Behavioural factors. It targets customers from the upper-class
social group, Professionals & Executives who have an inclination towards the
modern technology equipped vehicles, more safety, more styling & more efficiency.
Differentiation targeting strategy is used by Mercedes to attract the customers and
satisfy their wants.

It targets young buyers who are passionate to drive and cars resonate of what they
are, what their fashion statement & style is.

Positioning itself through emotional appeal and creating top of mind awareness has
helped the company in becoming the best luxury car makers in the world.

A)SEGMENTATION

 Luxury automobiles segment including sedans, suv’s and hatchbacks

  Geographical Segmentation:- Mainly metropolitan cities
 Demographical Segmentation:- Middle aged people with high income level
and youth are also included
 Psychographic Segmentation:- Showing high class and status of people

B) TARGETING

 Mercedes-Benzes car targets mainly rich people

 Mainly middle aged people with high income
 Mercedes targets females as well as youth
 From past few years, they have targeted wealthy farmers as well

 This brand of automobile tends to segment and target the customer base
as per their income and social status. The organization generally tends to
target wealthy consumers.
 The competitive strategy of the organization influences them to target
middle to higher income population including male and female
consumers.
 The organization offers cars for every desire to their diversified consumer
bases.
 The targeted consumers are mainly consists of middle aged population.

10.

B) POSITIONING

 The slogan, “ The Best or Nothing “

 Mercedes-Benz has adopted a positioning strategy as a manufacturer of
highly reliable and safe automobile, resulting in a price premium relative to
similar international competitors
 Outstanding service solution related to the products
 The car emphasizes design and style rather than speed. Position as well-
engineered stylish car, its tagline is ‘Vorsprung duch Technik’ in German
meaning ‘Lead by Technology’